The government changed the way they do inflation calculations in the 1980s. Actual 'consumer inflation' is minimized in the 'new' calculations.
If the govt. would used the old methods then inflation today would be at approx 9%!!!!!; the 'new' methods of calculation yield 3%. 9% inflation is a 'disaster', 3% makes you 'feel good' (while your purchasing power simply disappears).
http://seekingalpha.com/instablog/668911-erik-mccurdy/151843-new-inflation-versus-old-inflation